GE Aerospace raised its 2026 earnings and cash-flow outlook Tuesday after third-quarter adjusted earnings per share increased 36% year over year, according to the company’s results release. Orders surged 49% to $19 billion, but quarterly free cash flow fell 14%, leaving investors to weigh strong demand against cash conversion and delivery execution.
The company reported adjusted EPS of $2.25 and adjusted revenue of $13.285 billion for the quarter ended September 30. GAAP continuing EPS was $2.32 and total revenue was $14.118 billion. The adjusted measures exclude selected items and insurance run-off operations, according to the release filed with the SEC.
Services supplied most of the operating momentum
Commercial Engines & Services generated $10.342 billion in revenue, up 21% from a year earlier, and $2.887 billion in operating profit, also up 21%. The segment’s orders rose 58% to $15.3 billion. GE Aerospace said services grew 17%, with higher shop-visit volume and work scope, while equipment revenue increased 38% and engine deliveries rose 8%.
A large installed engine base generates maintenance and parts work for years. GE Aerospace said its commercial services backlog exceeded $170 billion and expects that business to grow at a low-double-digit rate in 2027. How quickly that backlog turns into revenue depends on airline flying, parts availability and the company’s own shop capacity.
Defense & Propulsion Technologies was steadier. Revenue rose 7% to $3.469 billion and segment operating profit increased 8% to $475 million. Orders advanced 18% to $4.3 billion. Commercial engines and services still produced most of the operating profit.
Higher guidance meets a weaker cash-flow quarter
GE Aerospace lifted its full-year adjusted EPS outlook to $8.00 to $8.10 from $7.65 to $7.85. It raised expected operating profit to $10.9 billion to $11.0 billion from $10.55 billion to $10.75 billion, and forecast free cash flow of $9.1 billion to $9.4 billion, compared with the earlier $8.9 billion to $9.2 billion range.
Quarterly free cash flow was $2.042 billion, down from $2.362 billion a year earlier. Cash from operating activities declined 14% to $2.203 billion. The nine-month picture was stronger: free cash flow reached $6.728 billion, up 13% from the first nine months of 2025. That puts more weight on the fourth quarter to show the higher annual target is backed by cash as well as earnings.
Margins moved in different directions. The GAAP profit margin was 19.9%, down 80 basis points year over year, while adjusted operating profit margin rose 220 basis points to 22.5%. GE Aerospace classifies operating profit and adjusted margin as non-GAAP measures and reconciles them in its release.
What investors should watch next
Demand is not the problem, particularly in commercial services. The questions are whether that demand can be converted into completed shop visits and deliveries, whether suppliers can keep providing parts, and whether cash flow catches up with the earnings outlook. GE Aerospace cited higher supplier input and record internal shop-visit output, while also noting that engine shipments and certification timing can affect when revenue is recognized.
Investing.com also reported adjusted EPS of $2.25 and revenue of about $13.29 billion and compared the figures with its consensus estimates.
The new forecast raises the bar for the final quarter. The next report will show whether services activity and engine deliveries hold up and whether full-year free cash flow lands in the raised range.